Germany's government confirms second year of recession | DW News

The German government has updated its growth forecast for the country’s economy. It is now expecting GDP to drop 0.2 percent for this year, making it the second year in a row with a shrinking economy. We’re talking to ING chief economist Carsten Brzeski about the reasons for Germany’s weakness, how the country stacks up compared to other economic superpowers - and what the future will hold.
Subscribe: www.youtube.co...
For more news go to: www.dw.com/en/
Follow DW on social media:
►Facebook: / deutschewellenews
►Twitter: / dwnews
►Instagram: / dwnews
►Twitch: / dwnews_hangout
Für Videos in deutscher Sprache besuchen Sie: / dwdeutsch
#Germany #Economy ä#Recession

[@lawrya5128]

The German government is reactive, not proactive. Moreover the Government punishes people working with heavy, complicated taxes and rewards people who decide not to work.

[@AYellowPepper]

That do not work because they can live of investment dividents because of a lack of Incomegains tax.

[@greatsuccess4734]

The only thing that still progressing in Germany are breweries.

[@ADhammer]

German industry is not competitive without cheap Russian gas.

[@eriontufa]

They will never admit to this though.

[@drym74]

You've misspelled nuclear energy. Russian gas is a trap.

[@vancityband6577]

Allowed other countries to out-develop their EV manufacturing capacity too?

[@user_zyzymvb]

They betrayed russia who fed them decades

[@denisdenisov4036]

Zely laughing in face of German taxpayers

[@harryleon2880]

As they say in Ukr. Its advancing backwards

[@univeropa3363]

Yes. Thank you, America, thank you, traffic light coalition.

[@kaiserleo1383]

your are welcome

[@ylee3438]

Germany is falling behind Korea in EV, batteries, digitalization, nuclear power plants, etc etc.

[@kaiserleo1383]

and Korea is behind china

[@Butny12]

The sacrifice to please UNCLE SAM 😅

[@huskydogable]

Stop blaming the US and look at yourselves in the mirror.

[@lt8395]

If you are asking the question the answer is yes, and its thanks to channels such as this.

[@urbansenicar81]

Which is again government funded.

[@srikanthshastry4546]

The Problem with Germany is it has the money but the laws they made don't allow them to spend it or borrow it when needed. The Germans had so many golden opportunities in the last decade. Including recently Intel wanting to establish a foundry in Magdeburg. Common sense would say, the politicians should prioritize such investments as they generate long term capital and employment. But, this is Germany. They dint even try to fund finding land to build the foundry, the most basic requirement. It's like investing a ton of taxpayer funds to design and manufacture a modern gun only then to use it to shoot yourself.

[@crankcase75]

Intel not opening a foundry in Germany (or Poland) has more to do with the terrible state of Intel right now and less to do with Germany to be fair. Even in existing plants like Ireland, there may be some scaling back.

[@Sugar2307]

Lashing everything on German government is ridiculous. It is not as simple as you portray. Intel will go bankrupt and it will be poor investment for German government if they invest in a frail company.

[@Oscuros]

<a href="#" class="seekto" data-time="419">06:59</a> I don't think that German governments "forgot" to invest in digitalisation, education, infrastructure, this is a dissatisfactory answer to give in causation. I can only speculate that it was not economically efficient at the time to invest in those, when for example and at last the pool of East European labour is available. A major goal since the early 20th Century to access those as a market for finished goods with cheap labour coming the other way. So why invest in education, and more to the point it becomes less efficient, like for the British with the Colonies and for the Spanish with theirs. Also German costs would be higher, no, plus they would be charged more, as also happened to the British and Spanish. Contracting out is not just cheaper, it becomes like a grim logic, something that stops being an option after a while, because German labour is not affordable with all the social gains there. It was the same for the British with coal. They are experts in deep mining, not open cast, they had the highest safety standards globally in the 1980s, plus unions to give fair wages. All of those things cost money, safety, welfare, so after a while it becomes cheaper to import coal and maybe export your own coal to people that will pay more for it, or just abandon the coal in the ground, because it is too expensive to mine efficiently compared to other producers. A steel industry is a nice idea, but it became more efficient to sell the last foundry to an Indian company, so they bear the risk of running the forge and keeping it going. The solution would be reinvesting in the youth to avoid mass long term unemployment for them, like in other parts of Europe and to concentrate on luxuries as well as perhaps tourism. China continues to be the biggest market for luxuries and there are certain luxury items that are regional or with luxury cars, Germany has advantages in now. Tourism that is properly managed regarding impact on the local people with leisure in general for internal tourism as well should be another service sector that could easily be expanded on and give jobs to younger workers. That is if we continue to stumble on with this model of capitalism after Marx has be proven right about it so many times. Not just the economic friction that Germany is experiencing that all economic hegemons experience, but also because the booms and busts are getting bigger and deeper each time, like he predicted.

[@kapatta]

The automotive sector gave birth to BMW Mercedes and VW group. The diversification is missing and we are totally relying on Automotive and Manufacturing sector which is not competitive anymore due to several reason. IT sector is weakest point of Germany with no investments and concrete policy. This is the reason giant IT tech companies like Meta, Google, IBM, Apple, Microsoft, Intel, Nvidia Amazon aren't born here. Now these IT tech companies are overwhelming the Automotive sector as well since the car is heavily dependent on Software and Semiconductor Chips

[@felipe-vibor]

Remember Nord stream

[@mose425]

You didn’t mention Russian economy. Did you forget?😂

[@luciferjohnson8495]

What about Russian economy? I live in russia as a foreigner for the past 10 years. It's not looking here as well. Don't go for the Google statistics. I'm talking about the real issues. If you want we can debate here. If KZbin allows me to tell the truth and don't remove my comment. I'll explain to you what issues are we facing here in Russia.

[@ZayedJim]

@@luciferjohnson8495 i am from bangladesh . i want to know the truth .

[@leonardoorellano6652]

@@luciferjohnson8495 i think what you can bring to the table are anecdotal evidence... those are quite worthless in the grand scheme of things.. besides, ill be honest i don't even think you live in Russia ... but i am speculating

[@luciferjohnson8495]

@@ZayedJim my friend was from Bangladesh as well. He left Russia last year for France. Go ahead ask me any questions you want and I'll answer them honestly.

[@MissHallikeri]

In India only 12 standard science students take German as a subject. So they stress on the consonant sounds

[@levity1893]

Unfortunately, companies won’t hire you if you don’t speak German language. Interestingly, there are foreign workers already in Germany.

[@michalskrzypiec]

It's an official language of Germany. Why shouldn't u speak German? We need more kids. Without kids u have no more consumers and noone buying and automation doesn't solve the problem when noone buys goods u produce

[@siemdecleyn3198]

'The combination of a stagnant economy and the debt break is unique' Sums it up nicely.

[@barrylane1055]

Apparently, German business has sucked up all the profits and as a result domestic consumption is way down. Higher wages??? The debt break is a killer!!!

[@peterdes6792]

haha I live in berlin working in delivery and can say that germany in recession pays better than poland (where I lived) in times of prosperity ;-)

[@luciferjohnson8495]

What's the hourly wage you get?.

[@melovinde]

LOL Germany 😂😂😂

[@AmairaNymativy-uy7vf]

That is inevitable if Germany keeps abandoning cheap energy supplies from Russia and decoupling from its biggest trade partner China.

[@NihilNovi]

Germany did not simply "forgot" to invest, the German governments of the past decade actively avoided investments ("Schuldenbremse"). Another massive mistake was the phase out of nuclear energy in favor of cheap authoritarian gas. What Germany needs is a massive investment in education, infrastructure, entrepreneurship and future technology research. Abandon the idea that the automotive industry will continue to drive prosperity, these days are long gone. With a likely future populist government these problems will only get worse.

[@coolredpen]

Germany cant get workers when 99% of jobs require fluent German language

[@maxl2781]

Thanks to the US

[@luciferjohnson8495]

Instead of solving your own issue. Instead blame everything on the USA.

[@phoque121]

From watching mainstream news, you would expect the Russian economy would be failing, but instead, it's Germany's 🤷‍♂

[@robert8764]

but shawarma sales are booming, right??..deutschland schafft sich ab

[@jimamar]

Whatever, Germany is America's mistress who left her devoted boyfriend, Russia.

[@thanhnguyentat7766]

Well no gas, less electricity and less light bulbs. It seems a little darker all over germany. I guess itd be better for the environment and the earth.

[@Senen-l3z]

The Herero and Namaqua Genocide was the massacre of approximately 65,000 Herero and 10,000 Nama between 1904 and 1907 by German military forces in modern-day Namibia . Germany formally colonised GSWA in 1884.

[@IrenESorius]

TLDR: Yes.

[@TheSphat]

Das macht mich glücklich. Endlich mal gute Nachrichten! Weniger ist mehr, im Angesicht der Metakrise.

[@eatcarpet]

Yeah, we knew this would happen as soon as they cut Russian gas.

[@Nick2Stix]

she's saying null but I think she means nill

[@urbansenicar81]

"Germany's government confirms second year of recession | DW News Is Germany's economy failing?" ... Yes.

[@urbansenicar81]

All is not lost! Scholz and Leyen are yet to decide how to set your thermmostat.

[@manishmmmec]

Germany needs new outlook also it needs new global friendly partners to take on the new challenges !

[@happinesschidera2293]

*Thanks for keeping us updated! I feel sympathy and empathy for our country. low income people are suffering to survive, and I appreciate Amanda. You've helped my family with your advice. imagine investing $30,000 and receiving $95,460 after 28 days of trading*

[@MiracleEkezie-rb4rh]

I began investing in stocks and Def earlier this year, and it is the best choice l've ever made. My portfolio is rounding up to almost a million, and I have realized that when a stock makes it to the news. Chances are you're quite late to the party, the idea is to get in early on blue chips before it becomes public. There are lots of life changing opportunities in the market, and maximize it

[@AndrewJadal]

What opportunities are there in the market, and how do I profit from it?

[@happinesschidera2293]

You can make a lot of money from the market What opportunities are there in the market, and how do I profit from it? regardless of whether it strengthens or crashes. The key is to be well positioned.

[@AliceAlice-zx6vd]

I would really like to know how this actually works.

[@MichealEdson]

Do you know of a reputable broker I should work with first

[@DerekFolan]

The EU needs to do something to end Austerity politics. Thinking just in terms of Germany is outdated. The economy needs a kick start. This means the EU needs their lower paid workers and their middle classes to have more money to spend in the overall economy. The opposite of Austerity would be stimulation, here I would suggest introducing a universal basic income for all EU citizens, This should speed up growth with more money flowing in the economy. Basically we need to create more consumption by letting people already here have more money. Instead of trying to import immigrants to create more consumers.Simply make it a variable payment that can lower to zero in times of Austerity.

[@mingouczjcz3800]

Guess that Germany still has a very proud old economy from automobile industry, machinery industry, pharmaceutical industry, to chemical industry , while China now is basically a 5G-AI-based digital economy which serves as backbone for and propels those traditional industries.

[@anuragchakraborty8766]

That's why majority of Chinese youth sitting unemployed.

[@windsong3wong828]

I was traveling in Germany a few weeks ago. Germany is beautiful and feels prosperous but there are no aircon in cafes and restaurants during summer. Sheet is happening…? No cheap Russian oil and gas …. The war in Ukraine will kill EU ….as they can’t compete anymore.

[@vericulum6810]

Why would there be air conditioning there? It isn't Texas. It's not humid and not that hot. Aircon is not neccessary.

[@kimchung864]

But in Ghana, they do. So Ghana must be richer than Germany.

[@windsong3wong828]

@@vericulum6810 It was 37 C. Hot like anything.

[@windsong3wong828]

@@kimchung864 Shows that businesses are suffering.

[@arisskarpetis]

In the good times, instead of modernising, loan the money to Mediterranean countries. How did that work out?

[@pollutingpenguin2146]

How’s it going abandoning nuclear energy and Russian gas? This is the price for being politically correct. Absolute insanity

[@Curryking32000]

You should have left the eu. The UK are now the fastest growing economy in the G7 while Germany is bottom of the pile. Us in the UK thank brexit for that.

[@abrahamlevi3556]

What about political stability?

[@ianmacarthur1144]

whats wrong with your graph for india and china?

[@rastislavsmolek8140]

DW If you are going to use faulty graphs, please at least modify them. <a href="#" class="seekto" data-time="192">3:12</a> China did have bigger growth in 2023, but the bar is higher in 2024. Same case with India... Yeah structurally German economy weakened in comparison to the US in last decade. It's result of weak investment in digitalization and using undersea gas pipe from Russia didn't help either, next time when building pipeline land pipelines are better due the maintenance options when something goes wrong... Plus German bureocratic apparatus is something that was created when German economic model worked flawlessly now it is just expensive burden.

[@summer031977]

The German economy is too dependent on China. The Chinese economy is not doing well, the German economy is not doing well either.

[@Fishstick]

seams reasonable. low demand on China's side since the pandemic in combination with supply chain disruptions and geopolitical instability. Demographics, Germany's twisted economic philosophy (resulting in less consumption, low investment) and global and inner political tensions probably play a role too. According to the comments here it's all due to Russian gas of course.

[@luciferjohnson8495]

Germany economy was dependent on cheap Russian gas and oil. Nothing to do with China

[@summer031977]

@@luciferjohnson8495 Yes, it was dependent on cheap Russian oil and gas just as it's dependent on the brutal CCP economy.

[@turkmenistan1940]

We should've started investing heavily in AI, robotics and other automation yesterday Europe wide Start teaching it in schools now

[@deesiInGermany]

What about excessive Data Security.... They took every thing to extrime

[@barrylane1055]

The Greeks must be laughing their heads off at all of this!!! Schadenfreude?

[@robertwang7825]

Very challenging when you losing 40% mkt share in the biggest auto mkt in the world - China and it is worsening. Do you how many ICE cars including German , are on 2nd hand car lots unsold even at crazy deep discounts. And sales of Chinese EVs are breaking records every month. I know, I live in China. Legacy automakers have no chance of competing and clearly this is the beginning of the end.

[@diegousalma]

Happens when you become the USA puppy.

[@cookingonthego9422]

Germany has a good economy because of well-educated people and the labour market that takes care of them. Basis is a good emphisis of workers in laws. Remove this, and Germany will colapse. Economies changed Germany will adopt as long as what i said does does not go away. The automotive sector will go away, and the new one will emerge. Now, there are no smart, unemployed people to even start something else. Germany will be fine.

[@TakalaniMavhunga-d6j]

Noord stream pipeline 😂

[@koblongata]

maybe it's because they are still using fax machines

[@lovelybitofbugle6762]

I blame brexit

[@nolimit6241]

This happened to japan. Being americas mistress brings opportunities to americas foes

[@AQuietNight]

China is having the same problem. There goes your theory.

[@nolimit6241]

@@AQuietNight everyone is going through tough times after covid . but japan and germany wont unless they serve their own interests not listening to usa

[@gigachad_6862]

China will crush every western economy😅 China is giving better deals for ppl and govt in global south. China is also building infrastructure and factories in global south which will crush western manufacturing due to wage gap and low cost raw material and transportation. Why African steel need to be sent to Germany to produce cars to be sold again in Africa 😅 China is building cars motorcycles commercial vehicles inside africa from african raw material with Majority african workforce. How is Germany able to compete with them. Even in other manufactureing items china has cost advantage over West.

[@reardelt]

recession despite having high immigration?

[@luciferjohnson8495]

Nothing to with immigration. The reason for this is Germany economy enjoyed cheap Russian oil and gas for a long period of time. Remove that and you get this. Simple math.

[@twomix1822]

Germany relied too much on China and got screwed for it.